GBP/USD – 1.3209

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

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Tenkan-Sen level                 : 1.3209

Kijun-Sen level                    : 1.3257

Ichimoku cloud top              : 1.3269

Ichimoku cloud bottom        : 1.3238

Original strategy :

Sell at 1.3285, Target: 1.3185, Stop: 1.3320

O.C.O.

Buy at 1.3160, Target: 1.3260, Stop: 1.3125

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.3285, Target: 1.3185, Stop: 1.3320

O.C.O.

Buy at 1.3140, Target: 1.3250, Stop: 1.3105

Position : –

Target :  –

Stop : –

As cable has remained under near term pressure, adding credence to our view that a temporary top has been formed at 1.3329 yesterday, hence consolidation with downside bias is seen for correction to 1.3180-85, then towards support at 1.3161, however, near term oversold condition should limit downside to 1.3130-35 and bring recovery later to the Kijun-Sen (now at 1.3257) and then towards resistance at 1.3290 but price should falter well below said resistance at 1.3329, bring another corrective decline later.

In view of this, whilst we are still looking to buy cable on further corrective fall, we would sell sterling on recovery as said resistance at 1.3290 should cap upside, bring another corrective decline later. Only break of said resistance at 1.3329 would abort and signal recent upmove is still in progress for headway to 1.3355-60 (61.8% projection of 1.2909-1.3224 measuring from 1.3161). 

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